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New Mexico Statutes Chapter 55. Uniform Commercial Code § 55-9-204. After-acquired property; future advances

Current as of January 01, 2024 | Updated by FindLaw Staff

<This version of section effective January 1, 2024. See, also, version of section 55-9-204 effective until January 1, 2024.>

(a) Except as otherwise provided in Subsection (b) of this section, a security agreement may create or provide for a security interest in after-acquired collateral.

(b) Subject to Subsection (b.1) of this section, security interest does not attach under a term constituting an after-acquired property clause to:

(1) consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within ten days after the secured party gives value; or

(2) a commercial tort claim.

(b.1) Subsection (b) of this section does not prevent a security interest from attaching:

(1) to consumer goods as proceeds under Subsection (a) of Section 55-9-315 NMSA 1978 or commingled goods under Subsection (c) of Section 55-9-336 NMSA 1978;

(2) to a commercial tort claim as proceeds under Subsection (a) of Section 55-9-315 NMSA 1978; or

(3) under an after-acquired property clause to property that is proceeds of consumer goods or a commercial tort claim.

(c) A security agreement may provide that collateral secures, or that accounts, chattel paper, payment intangibles or promissory notes are sold in connection with, future advances or other value, whether or not the advances or value are given pursuant to commitment.

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Cite this article: FindLaw.com - New Mexico Statutes Chapter 55. Uniform Commercial Code § 55-9-204. After-acquired property; future advances - last updated January 01, 2024 | https://codes.findlaw.com/nm/chapter-55-uniform-commercial-code/nm-st-sect-55-9-204/

Read this complete New Mexico Statutes Chapter 55. Uniform Commercial Code § 55-9-204. After-acquired property; future advances on Westlaw

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